Offer in Compromise (OIC)

Installment Agreements and Offers in Compromise, Taxes & IRS
Published Date: October 24, 2024
Last Modified: 2 months ago

What is an Offer in Compromise (OIC) and How Does it Work?

An Offer in Compromise (OIC) is a formal agreement between you and the IRS where the IRS agrees to accept a lower amount than you owe to settle your tax debt. The IRS will consider your unique financial situation, including your ability to pay, income, expenses, and asset equity. It is not a right and must be applied for and approved.

Glossary Article

One Application. 20+ Loan Offers.
No Credit Hit

Compare real rates from top lenders - in under 2 minutes

Installment Agreements and Offers in Compromise, Taxes & IRS

Want to speak to an expert?

Fill out this form and we will contact you with for a free consultation

Recommended for You

What Is an Offer in Compromise and How It Works

An Offer in Compromise (OIC) lets eligible taxpayers settle federal tax debt for less than the full amount. It’s designed for taxpayers who can show they cannot reasonably pay the full IRS balance.

Form 656-L – Offer in Compromise (Doubt as to Liability)

Form 656-L is used when you believe you don't actually owe the IRS the tax they say you do. This can be a way to resolve tax debt based on a dispute, rather than financial hardship.

Letter 2604C: Rejection of Offer in Compromise

Letter 2604C from the IRS means your Offer in Compromise was denied. It's important to understand why and what your next steps are.

Advance Designation to End Offer Waiver

An Advance Designation to End Offer Waiver is a formal IRS action that terminates a tax offer in compromise waiver early, allowing the IRS to resume full collection activities.

Offer in Compromise: Doubt as to Collectibility

Doubt as to Collectibility is an IRS Offer in Compromise (OIC) option for taxpayers who genuinely cannot afford to pay their full tax debt now or in the future. It allows settling for less than owed based on financial ability.

Effective Tax Administration OIC

An Effective Tax Administration Offer in Compromise (ETA OIC) allows taxpayers to settle IRS debts for less than owed when paying full taxes would cause significant hardship.

One Application. 20+ Loan Offers.
No Credit Hit

Compare real rates from top lenders - in under 2 minutes

Offer in Compromise (OIC)

What is an Offer in Compromise (OIC) and How Does it Work?

One Application. 20+ Loan Offers. No Credit Hit

Want to speak to an expert?

Recommended for You

What Is an Offer in Compromise and How It Works

Form 656-L – Offer in Compromise (Doubt as to Liability)

Letter 2604C: Rejection of Offer in Compromise

Advance Designation to End Offer Waiver

Offer in Compromise: Doubt as to Collectibility

Effective Tax Administration OIC

One Application. 20+ Loan Offers. No Credit Hit

One Application. 20+ Loan Offers.
No Credit Hit

One Application. 20+ Loan Offers.
No Credit Hit